San Jose city officials have approved a contentious plan for Costco to build a new store at the Westgate West shopping center, while introducing dozens of new conditions aimed at addressing traffic and safety concerns raised by thousands of residents.

Despite the economic benefits this project may bring, San Jose Vice Mayor Rosemary Kamei has been at the forefront of efforts to ensure that the wholesale giant takes additional steps beyond the city’s initial requirements to mitigate the potential impacts on nearby homes and schools.

Kamei shared that she has been in ongoing discussions with her office, community members, and Costco representatives to refine the proposal and alleviate concerns. In addition to the standard review conditions, Costco has voluntarily agreed to implement several extra improvements in an effort to be a good neighbor.

The plans for Costco include an investment of approximately $60 million for a facility located at 5287 Prospect Road. This project will involve demolishing three existing single-story buildings that have fallen into decline, to make way for a new 40-foot tall store encompassing 165,148 square feet, complete with a rooftop parking area.

Prior to the recent approval on the 22nd, Costco already operated four stores and one business center within San Jose.

The planned Costco at Westgate West, situated on the boundary between San Jose and Saratoga, has sparked mixed reactions within the community since the idea of a new store was announced. City officials and business leaders view the proposed West San Jose Costco as a positive economic development, projecting the creation of 250 to 300 jobs with an average hourly wage of $29. Additionally, San Jose anticipates an annual increase of $2 million in sales tax revenue, alongside other tax benefits that would support local government and nearby schools.

Leah Toeniskoetter, president of the San Jose Chamber of Commerce, expressed her support for the Costco project, highlighting that after three years of communication and design alterations, as well as a commitment of $2.5 million to address additional traffic needs, Costco has proven to be a collaborative partner.

However, many residents see the situation differently, accusing San Jose city officials of prioritizing big businesses over the wellbeing of local residents. They express concerns about the new Costco store’s proximity to residential neighborhoods, especially given its closeness to Prospect High School and Country Lane Elementary, anticipating an increase of about 11,000 vehicle trips daily, which raises alarms about noise and safety impacts.

Julie Reynolds-Grabbe, president of the Prospect High School Parent-Teacher-Student Association, remarked that supporting this project equates to prioritizing city revenue over the safety and wellbeing of students and community members.

In response to the concerns, San Jose Mayor Matt Mahan acknowledged that some worries are valid but refuted claims that the city’s decisions are solely based on financial considerations.

As part of the conditions approved by the city council, Costco has committed to limiting traffic on Graves Avenue and relocating its loading area away from residential zones. Furthermore, the company agreed to increase its contributions for intersection traffic improvements from $1 million to $2.5 million to enhance safety for cyclists and pedestrians.